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Justice News

Department of Justice
U.S. Attorney’s Office
Eastern District of Louisiana

FOR IMMEDIATE RELEASE
Thursday, April 4, 2019

Arizona Woman Pleads Guilty To Making False Statements to a Financial Institution

NEW ORLEANS U.S. Attorney Peter G. Strasser announced that VALERIE SCHONES, age 54, of Tucson, Arizona, a former employee of an undisclosed entity, XYZ Financial, LLC, also located in Tucson, Arizona, has pleaded guilty yesterday to a Bill of Information charging her with Making False Statements to a Financial Institution.

According to court documents, beginning in or around October 2008 and continuing to on or about May 2009, SCHONES, along with co-defendants PATRICK HEALEY and JARED CASTELLAW made false statements to the Federal Housing Administration “FHA” in order to assist low-income borrowers wishing to purchase homes in St. Bernard in qualifying for FHA insured loans that they would not otherwise have qualified for. In total, due to the acts of the defendants, the FHA suffered a loss in excess of $852,415.

SCHONES faces a maximum of 30 years imprisonment, a fine of not more than $1,000,000, supervised release of up to 5 years, and a special assessment of $100. The Court set sentencing in this matter for July 10, 2019 at 2:00 p.m.

U.S. Attorney Strasser praised the work of the Department of Housing and Urban Development, Office of Inspector General and the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorneys Sharan E. Lieberman and Edward J. Rivera.

 

 

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Topic(s): 
Financial Fraud
Updated April 4, 2019